Japan?s Nikkei rebounds as technology stocks recover

Japan?s Nikkei 225 Index rose 1.39% to close at 65,324 on Friday, recovering some of the previous session?s losses as selling pressure on technology stocks eased. Investors remained focused on the outlook for the artificial intelligence (AI) sector and its impact on global markets.

Sentiment improved after Taiwan Semiconductor Manufacturing Company (TSMC) reported a record third-quarter profit. Nvidia CEO Jensen Huang also defended the financial strength of AI computing provider CoreWeave. Meanwhile, AI company Anthropic reported a nearly twelvefold increase in third-quarter revenue to $16.8 billion. Investors also took some comfort from Federal Reserve Chair Kevin Warsh?s remarks in Bangkok, as he did not signal an immediate interest rate hike despite higher-than-expected US inflation.

Technology stocks led the recovery, with Kioxia rising 3.8%, Taiyo Yuden gaining 2.1%, and Lasertec climbing 5.1%. Financial and consumer stocks also advanced, with Mitsubishi UFJ gaining 1.8% and Toyota Motor rising 2.2%.

Despite Friday?s rebound, the Nikkei 225 fell 5.37% over the week, marking its steepest weekly decline since July. This highlights continued investor caution amid concerns over technology valuations, AI sector developments, and the outlook for US interest rates.

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